What is its current market capitalization? & What is its ranking on CoinMarketCap? As of March 26, 2025, Hedera (HBAR) has a market capitalization of approximately $8.45 billion and is ranked #17 on the CoinMarketCap-Website.
Is this cryptocurrency a Layer 1 (independent blockchain) or a Layer 2 (built on an existing blockchain) If it is a Layer 2, which blockchain does it rely on? Hedera is an independent Layer 1 distributed ledger technology (DLT). It is using its own fast and secure Hashgraph consensus instead of traditional blockchain methods. This Hashgraph consensus algorithm optimizes bandwidth efficiency and enables to process hundreds of thousands of transactions per second within a single shard.
Is it a native token (used for transaction fees and securing the network) or a non-native token (an asset on an existing blockchain)?HBAR is the native cryptocurrency of the Hedera the network and it serves two roles: powering smart contracts, file storage, and regular transactions, and securing the network through staking.
What consensus mechanism does it use? (Proof of Work, Proof of Stake, or another?) It uses a Proof-of-Stake (PoS) model that can enhance transaction verification efficiency and provide a high level of security by using staked tokens to achieve consensus more efficiently. In this way it is differentiating itself from traditional proof-of-work blockchains (which rely on computational power to validate transactions and secure networks).
What is the main purpose of this cryptocurrency? (Payments, smart contracts, DeFi, NFTs, etc.) The primary objectives include enhancing transaction speed and supporting high-volume operations such as micropayments, data integrity, and tokenization.
Who are its main competitors? Competitors are other blockchain platforms that offer similar functionalities, specifically Ethereum, Cardano, and Solana.
What are its advantages? (Speed, low fees, security, decentralization, etc.) Hedera offers high transaction speed, capable of processing thousands of transactions per second, and low fees for transactions. It also has a strong focus on security through its unique consensus mechanism.
What are its weaknesses? (Scalability, security risks, centralization, etc.) Potential weaknesses could be the governance model that involves a council of up to 39 global organizations and major corporations. This structure could raise some questions about the decentralization and control.
How does it address the blockchain trilemma (scalability, security, decentralization)? Hedera is addressing this dilemma by employing its unique Hashgraph consensus algorithm. This design allows for high/fast transaction while maintaining a high level of security.
Who are the main users of this cryptocurrency? (Retail users, developers, businesses, institutions?) Are there any major partnerships or integrations? How active is its developer community? It is primarily used by businesses and institutions, also major corporations like LG, Google, IBM, and Boeing. The platform is governed by a council of leading organizations across various industries. While Hedera offers tools for developers to build decentralized applications, its main users are enterprises that need efficient, secure, and scalable distributed ledger solutions.
What is the maximum supply of the token? Hederas native cryptocurrency (HBAR) has a maximum supply of 50 billion tokens, with 42.21 billion currently in circulation.
How is it distributed? (Mining, staking, pre-mined, allocated to the team?) 32.41% of the tokens is allocated to the pre-minted treasury, 4.44% to employees, 17.4% to SAFTs and purchase agreements, 23.99% for ecosystem development, 7.96% to Swirlds, and 7.96% to the founders.
Does it have a burning mechanism or any deflationary aspect? Hedera does not implement a native token burning service.
What are the biggest risks to this cryptocurrency’s success? (Regulation, security, competition?) The main risks to Hederas success could include regulation, security concerns, and competition from other blockchain platforms.
What are the upcoming developments in its roadmap? Hedera does not have any specific details on specific upcoming developments.